Jakarta, CNBC Indonesia – Getting banned in many countries keeps the Bitcoin price under pressure. Now the bad luck has to be experienced by Bitcoin cs which previously seized the attention of the global public because of its continuous price to the moon.
Bitcoin price had soared more than 100% from the beginning of the year to mid-April. This cryptocurrency made by Satoshi Nakamoto had a price of US$ 65,000/BTC.
In its journey Bitcoin does move with high volatility. The first four months of this year Bitcoin experienced several corrections but was able to rise again and even managed to set new records after that.
But since mid-April, the Bitcoin price has been falling. In just one month, the market capitalization of Bitcoin, which broke through US $ 1 trillion, collapsed more than 30%.
Since May 20, Bitcoin price has consistently been below US$ 40,000. Today Saturday (29/5/2021) the price of one digital token is equivalent to US$ 36,866. Bitcoin price continues to fall after being banned in many countries.
Traders of Bitcoin and other cryptocurrencies or digital currencies are increasingly getting stiff resistance from a number of countries. After China under Xi Jinping’s administration, then US President Joe Biden who imposed tax reporting for crypto transactions above a certain value, this time Iran also banned it.
The Iranian government also announced a temporary ban on mining Bitcoin and other cryptocurrencies on Wednesday (26/5/2021). The reason, officials called the activity “wasteful” of energy and caused power outages in several cities in Iran.
Before Iran, Xi Jinping’s government had been tough on crypto, in addition to China wanting to create its own digital currency.
Massive selling has still occurred since last week in the crypto market after the Chinese government’s crackdown. On Friday last week, China banned financial institutions such as banks and payment fintechs from providing cryptocurrency transaction services.
China also reminded investors not to trade speculative cryptocurrencies. Over the weekend, China added to the blow by claiming it would issue new rules to crack down on miners and cryptocurrency tradesmen.
In addition, Elon Musk, the owner of the Tesla electric car factory and one of the richest people in the world, is also concerned about the sustainability of Bitcoin mining and transactions in the world. He even decided to stop buying Tesla using Bitcoin.
Musk in his statement mentions concerns that Bitcoin causes the use of fossil fuels to increase rapidly. He also alluded to data from researchers at Cambridge University showing a spike in Bitcoin’s electricity usage this year.
Although the price of Bitcoin briefly rebounded and approached US $ 40,000 when Elon Musk invited Bitcoin ‘miners’ to discuss sustainability, the price increase did not last long and the price fell again.
One more thing, the Government of US President Joe Biden is also tough on illegal Bitcoin miners. The US Treasury said it would request tax returns on crypto transfers with a nominal value of more than US$10,000, similar to cash transactions.
Negative sentiment continues to pound this relatively new digital financial asset. At the same time, the price of gold has actually increased. The rivalry between gold and Bitcoin is becoming more and more visible.
When the price of Bitcoin rises, the price of gold tends to fall. And vice versa as recently happened. When Bitcoin was difficult to rise to US $ 40,000, the world gold price actually penetrated US $ 1,900/troy ounce.
This also indicates a shift in sentiment towards risk in the market. Previously, retail and institutional investors sold gold to buy Bitcoin. Now the opposite is happening.
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